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Interpublic Discusses Omnicom Merger

12/12/2024
Advertising Agency
New York, USA
67
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A spokesperson from Interpublic tells LBB how IPG and Omnicom “fill gaps the other has” and why the merger will “accelerate innovation”

On Monday December 9th, the board of directors for advertising holding companies Omnicom and Interpublic (IPG) announced they had unanimously agreed for Omnicom to acquire Interpublic in a stock-for-stock transaction. 

The announcement set ambitions for the combined company - which will retain the Omnicom name - including improved outcomes for clients and $750 million in annual cost synergies. And the industry reacted. Interpublic CEO Philippe Krakowsky will co-chair the Integration Committee and be co-president and COO for Omnicom post-merger, alongside current COO Daryl Simm.

Speaking to LBB, a spokesperson for Interpublic shares that the transaction is expected to close in the second half of 2025, with the two companies still operating independently for now. They tell LBB that IPG’s “foundational belief in the power of ideas, enabled by technology and data” is complementary to Omnicom’s business, and why “the future belongs to those who embrace transformation.”


LBB> What was the starting point for this acquisition discussion? And what is the timeline for the overall merger process?

IPG> The initial discussions began almost a year ago. The transaction is expected to close in the second half of 2025, subject to Omnicom and Interpublic shareholder approvals, required regulatory approvals, and other customary conditions.


LBB> Why is now the right time for this deal? What opportunities and pressures created the perfect conditions for it?

IPG> We are living in an era of exponential change. We know the future belongs to those who embrace transformation, and this merger is transformational, creating the industry’s premier marketing and tech-enabled sales company.

The rise of digital platforms has revolutionised advertising strategies, pushing advertisers to innovate continually. It’s more important than ever to marry creativity with deep capabilities in addressable media, data, adtech and martech, and digital commerce.

By uniting two of the industry’s leading marketing companies within a single entity, we will be able to further focus investment in areas like platform enablement and generative AI to help our clients succeed.


LBB> What will IPG's agency brands look like under the Omnicom umbrella? Can we expect to see changes to the identity or structures of these agencies/networks?

IPG> Omnicom shares our belief in the power of creative ideas generated from strong agency brands, and ours will become part of their organisation.


LBB> How will this acquisition benefit or otherwise impact the clients of IPG agencies? 

IPG> The combination will create a company with unmatched capabilities, with the resources, talent, and leadership to optimally help clients build brands and drive sales.

In a consumer landscape that continues to evolve at pace and be shaped by technology, data and mass personalisation at scale, clients are looking for partners that will help them thrive in this environment. By joining forces, we accelerate innovation by focusing and amplifying technology and AI investments.

For now, however, we continue to operate as independent companies. Our company has been careful to avoid disruption or distractions at our agencies and client teams. Only a small team of corporate employees are involved in the transaction, while agency leaders continue to prioritise their clients.


LBB> What opportunities or capabilities will this allow Omnicom and IPG, which they previously didn't have?

IPG> One example: Interpublic has a superlative data and identity foundation at Acxiom and Omnicom has unmatched digital commerce and retail media expertise at Flywheel. Also, our companies are complementary geographically as we fill gaps the other has.


LBB> Philippe Krakowsky will be leading the Integration Committee and helping run operations for Omnicom post-merger. But what will an IPG-infused Omnicom look like? 

IPG> Our two companies have collaborated for many years on shared clients and have mutual respect for our respective teams. We also share a foundational belief in the power of ideas, enabled by technology and data. Our collective offering can deliver the best talent and expertise for every business challenge in every market, and best-in-class capabilities in growth areas like commerce, production, data, technology and media.

We have offerings, like Acxiom and Flywheel, that are very complementary and will become an unmatched offering to drive sales for our customers.


LBB> How can 'bigger' result in 'better' for Omnicom clients and employees, as well as consumers post-merger?

IPG> We believe that access to the range of our combined offerings, the strategic dexterity of a larger enterprise to solve for the range of business challenges, will be unmatched in our ability to drive growth for our customers.


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